10 Mistakes Generation Y Make with Advisors
Here are 10 common mistakes Gen Y should avoid when working (or not working) with an advisor, and ways to get around them.
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<b>1. Not Having an Advisor Help with Big Financial Decisions </b>
<b> 2. Not having a spending plan in place </b>
<b>3. Not paying themselves first rule</b>
There are multiple solutions to this, including forced savings through a paycheck, or a monthly ACH, says Ted Jenkins, co-founder of oXYGen Financial in Alpharetta, Georgia.
<b>4. The Ones who Make Less Money Can be Less Receptive to Advice </b>
The ones who make less money can be less receptive to advice, says Ted Jenkins, co-founder of oXYGen Financial in Alpharetta, Georgia.
Thats because these individuals are often more anxious when it comes to each dollar, and this can sometimes create a blind-sighted vision of the larger picture.
<b>5. Not Appreciating their Long Time Horizon in Investments</b>
Their risk tolerance has been colored by last several years in the market, says Michael Joyce, founder of Virginia-based Joyce Payne Partners. Often, they dont appreciate how time can be their friend for longer term objectives.
<b>6. Itching to Get Ahead Professionally</b>
School is important, but it is not the means to all ends.
With more people taking advanced degrees, theres an itch to get where they want to be from a professional standpoint, says Joyce. Sometimes, getting that experience is needed.
<b>7. The Budget Cliche </b>
Unfortunately much of the advice in this area is "skip the Starbucks" or "don't eat out as much", says Moss, and this generation isn't going to do that.
What is extraordinarily valuable to these clients is teaching them how to and even helping them negotiate a higher salary, says Moss. They also respond well to the power of automation in their financial lives. If you automate all your savings, 401k, etc. as well as your bills, obligations and charity once a year or so, your budget is done.
<b>8. This Generation Struggles with Insurance </b>
Moss suggests the time to think about insurance and the future is now.
I know from speaking with colleagues and friends in situations very much like the one described that they almost always feel this can wait., he says. But you cant wait. In reality, this is one of the biggest financial blind spots in many Gen Ys financial lives.
<b>9. Working with "Old School" Advisers </b>
<b>10. Planning too far out</b>
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